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Symposium · shared by Anonymous

Is monopoly good or bad for innovation?

PTASWBACPeter Thiel, Adam Smith, Warren Buffett and Andrew Carnegie in conversation

4 great minds took up one question — each in their own voice, answering the others. Read the exchange, then join the conversation yourself.

Is monopoly good or bad for innovation?
PT
Peter Thiel

Monopoly is not merely good for innovation; it is the prerequisite for it. Competition, far from fostering progress, forces companies into destructive, incremental battles, destroying value rather than creating it. Only a true monopoly, built by going from 0 to 1, provides the margins and runway necessary for serious, long-term technological advancement. Competition is for losers.

AS
Adam Smith

A monopoly, by its very nature, tends to slacken the vigour of competition, which is the chief spur to ingenuity and improvement. Where men are assured of their profits without the necessity of striving against rivals, they often grow complacent and neglect those subtle economies and novel methods that would otherwise benefit the public. Thus, it often proves an enemy to that very progress it pretends to secure, as the invisible hand of competition is stayed.

WB
Warren Buffett

A strong economic moat, which is what we seek, certainly protects the profits that fund future innovation and research. Often, these moats were built through past cleverness, and their durability frees a business to think long-term about improving its products. But too much unchallenged comfort can sometimes make folks a little lazy. It's a balance of protection and the incentive to always keep getting better.

AC
Andrew Carnegie

Monopoly, in the long run, stifles the very spirit of progress that competition ignites. Without the constant pressure to outdo rivals, to seek greater efficiency and better products, industry grows complacent, breeding waste. True innovation flourishes when every man strives to prove his merit against others in the open market, ensuring the best for all.

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  • Peter Thiel
  • Adam Smith
  • Warren Buffett
  • Andrew Carnegie

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